Go Back  AudiWorld Forums > Audi Models > Audi Q3 /Q5 / Q7 / Q8 > Audi Q8 > Audi Q8
Reload this Page >

Education requested on Leasing

Audi Q8 Discussion forums for the Audi Q8 SUVs

Education requested on Leasing

 
Old 05-07-2019, 07:02 AM
  #1  
AudiWorld Junior Member
Thread Starter
 
Join Date: Apr 2019
Posts: 27
Default Education requested on Leasing

I'm new to leasing so trying to learn as much as I can. I spoke to one dealer who told me that Audi uses the vehicle purchase price and then subtracts the residual value (currently 51%) then adds in interest to determine the cost amount to use in the lease..
Is the interest rate used in the lease set by Audi? Basically does Audi sets the interest rate and residual values or does each dealership do their own? What's the down side to a lease? Is it just the interest rate you pay on the lease? Is that rate usually higher than just
the 5% you would pay financing the car? Trying to understand if I finance the car and after 3 years I wanted to trade it in.. Would the trade in be higher than the residual value given the miles stayed within the lease amount? Sorry if this sounds confused but it's coming from me
who is in fact a bit confused. Thanks!

SteveKo is offline  
Old 05-07-2019, 08:13 AM
  #2  
AudiWorld Super User
 
Join Date: May 2017
Location: PA, USA
Posts: 2,335
Default

Steve,

Audi sets Residual based on term, and mileage (and whether AudiCare is in the deal or not, boosts residual by 1%

Interest is set ultimately by the dealer, based on a base rate set by Audi. Let's a dealer make some profit on the back end of a deal, for a generous discount on the front end of a deal. Ultimately, base rate is set by Audi., based on credit, income, debt to income ratio.....ie, that info per the credit application assigns you to a Tier, and that Tier determines the base rate.

Rates vary car to car - cars in demand (Q8, example in your case), or specialty models (RS anything) have higher rates than cars that are consistent movers with more competition (aka Q5, SQ5, A4, S4).

Plus and minus to lease same as plus to minus on a purchase. I've personally done both extensively. Neither is better nor worse in sum...it is all about what works better or worse for your tastes, your situation. I like having a new car, I like changing things up. I prefer a lease in that regard as it gives me the greatest flexibility. Leasing a car over and over time after time ultimately costs a bit more than buying the car and financing it for a typical term. But, I drive too much, so that is a factor too (though it's not my only car)..so a lease is usually not always a practical choice for me. I've paid cash, financed, and leased, extensively. 35 cars to date, 9 of them new Audi's.

Typically, in recent years (the last 4-5 ish) the residual value Audi assigns in a lease is a little higher than the actual market value of the car at the end of the lease....every brand does it, as it drives sales consistently. But the brands insure themselves against any GAP (same as you might have GAP insurance on a finance). In that regards, actual depreciation is not your issue in a lease, it's Audi's. Just like if the car is in a fender bender. That hurts value if you own the car. Has zero affect if you lease the car. A typical finance takes far more money down to net the same payment as a typical lease....which brings you into the thought of the "capacity" of your dollars now, vs their future value if you put them someplace else for the lease term. There can also be tax benefits of one vs another, again, depending on your particular situation. If mileage at the end of the lease is significantly lower than contracted mileage, it might pay to buy the car post lease (you buy it for the residual). That's how I came to own my "beater" A4...leased it new, was WAY under mileage, so the buyout made total sense. Bought it, and I will keep it till she finally calls it quits (159k and counting)

Feel free to give me a call if you want to discuss, you've got my info.

Last edited by SCarGuy; 05-07-2019 at 08:19 AM.
SCarGuy is online now  
Old 05-07-2019, 03:39 PM
  #3  
AudiWorld Member
 
Join Date: Apr 2019
Posts: 116
Default

Go to leasehacker and read. Do not start multiple posts like you did here or they will merge them or lock them. Just ask everything in one post.
Jsf721 is offline  
Old 05-07-2019, 04:12 PM
  #4  
AudiWorld Junior Member
Thread Starter
 
Join Date: Apr 2019
Posts: 27
Default

Thanks Adam.. !

Jsf721: Not sure what you mean? I started a post to learn about leases.? Only posted this one thread about it.? I'll check out the lease hacker forum. Thanks for that forum.

Last edited by SteveKo; 05-08-2019 at 03:18 AM.
SteveKo is offline  
 
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
Just Gizmo
Off-topic Discussion
12
11-16-2004 06:40 PM
faust92
Off-topic Discussion
4
01-22-2004 06:53 AM
dhodory
S4 / RS4 (B5 Platform) Discussion
4
09-24-1999 09:59 AM


Thread Tools
Search this Thread
Quick Reply: Education requested on Leasing


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service

© 2019 MH Sub I, LLC dba Internet Brands

We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.
 
  • Ask a Question
    Get answers from community experts
Question Title:
Description:
Your question will be posted in: